When was the last time you looked closely at your mortgage, the progress you are making on paying it off and how it compares to others in the market?
Small changes in the way you approach your mortgage can add up to huge savings!
We have put together our top tips for paying your mortgage off faster. Check out Part One below as well as links to our free calculators.
1. Frequency is key
Cutting down the size of your payments and making more of them could see you pay off your loan faster and with less interest overall.
If you pay your mortgage monthly, consider changing to fortnightly repayments. For example, if your mortgage equates to $2,400 a month, cut this in half and pay $1,200 each fortnight. As well as having more manageable payments to make, by the end of the year you will have paid off an extra month’s repayment!
2. Even the little amounts add up
A minimum repayment is just that. For most loans there is no reason why you can’t pay more, whether here and there or regularly.
By rounding up to a full number or contributing an extra $100 or even $10, you’ll significantly reduce your mortgage.
It may also be worth considering putting all bonuses, tax returns and gifts into your mortgage. Diverting these large sums to your loan will help you pay it off quicker.
3. Interest rates may fall, it doesn’t mean your repayments have to
When fees & interest rates decrease your repayments may reduce. This doesn’t mean that you must lower your repayments. By keeping your repayments at the same level when interest rates are lower, you will pay down more of the principle with each payment. The result? You will speed up the progress of your loan.
We have even more money saving tips! Keep an eye out, next month we will be posting Part Two of our top tips for paying your mortgage off faster!